SAIL Q1FY26 Result: Profit Soars 810% YoY to ₹744.6 Cr, Down 40% QoQ

SAIL Q1FY26 result: Net profit soared 810% YoY to ₹744.6 cr, down 40% QoQ. Revenue from operations increased 8% YoY to ₹25,921.8 cr, but declined 12% sequentially. The company spent ₹25,189.19 cr, up 5.5% YoY. Earnings per share stood at ₹1.8 (basic and diluted).

Steel Authority of India (SAIL) reported its Q1 FY26 earnings, showcasing a significant improvement in net profit but a decline in revenue. The company's net profit surged by 810% year-on-year (YoY) to ₹744.6 crore, although it fell by 40% quarter-on-quarter (QoQ). Revenue from operations increased by 8% YoY to ₹25,921.8 crore but declined by 12% sequentially. The company's expenses rose by 5.5% YoY to ₹25,189.19 crore, while earnings per share stood at ₹1.8 (basic and diluted).

Analyst Deepak Pal, registered with the Securities and Exchange Board of India (SEBI), noted that SAIL's stock has been in a short-term consolidation phase ahead of its earnings announcement. The technical charts indicate a bullish trend, with the stock trading above key Exponential Moving Averages (EMAs), reflecting strong underlying momentum. The Relative Strength Index (RSI) stands at 58, indicating moderate strength, while the Moving Average Convergence Divergence (MACD) remains flat and close to the signal line, supporting the consolidation view. Pal expects the stock to move towards the ₹149–₹150 levels if it reacts positively to the results.

Despite the strong operational scale and public sector support, SAIL's recent financial performance reflects pressure on profitability. The company's return on equity (4.1%) and return on capital employed (5.5%) remain low, and its debt-to-equity ratio (0.63) is moderate. However, the low quick ratio indicates limited liquidity. Overall, while SAIL holds long-term potential, its current fundamentals suggest it may be suitable only for patient investors waiting for a steel sector rebound.

Retail sentiment on SAIL has turned bearish, according to data from Stocktwits. The company's shares have risen by 15% year-to-date (YTD), despite the recent dip. The company is expected to report its Q1 FY26 results on July 26, which could provide further insights into its financial health.

References:
[1] https://stocktwits.com/news-articles/markets/equity/sail-stock-dips-ahead-of-q1-sebi-ra-flags-technical-strength-short-term-range-trade/choGHFNR5vj
[2] https://www.business-standard.com/companies/quarterly-results/tata-chemicals-q1-fy26-result-profit-revenue-dividend-shares-news-125072501255_1.html
[3] https://economictimes.indiatimes.com/markets/stocks/news/idfc-first-bank-q1-preview-pat-may-fall-up-to-68-yoy-amid-nim-pressure-6-things-to-watch/articleshow/122905747.cms